Expected lackluster industrial output in Poland may further highlight concerns about the sputtering growth, so far mostly led by exports, in the region. Dark clouds over the euro area may also affect central European markets Thursday.

The Polish statistics office is likely to report industrial output for July in low single digits, which–coupled with decelerating wage growth that month–could convince the Polish central bank to not only end its tightening cycle, but also cut from the key rate of 4.50%.

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A lower number of working days in July will weigh on the figure, Bank Zachodni WBK said. An unexpected increase of Poland’s purchasing managers index for the month, however, provides the potential for an upside surprise.

“Recent signals from the global economy suggest a drop in economic activity, which can affect the Polish industry adversely and its slowdown may not be only temporary,” the bank said.

In Hungary, second-quarter earnings release by OTP Bank (OTP.BU) will be in focus after the local market closes. Nine analysts polled by Dow Jones Newswires see the bank to boost its net profit 27% on the year to 27.4 billion forints, benefiting from a low year-ago comparison base.

OTHER NEWS

HUNGARY: Hungary will need further austerity measures to meet its budget deficit target if economic growth this year is hit by the eurozone debt crisis, Prime Minister Viktor Orban said Wednesday.

ROMANIA: Tourists traveling to Romania will soon be able to follow the trail of former communist dictator Nicolae Ceausescu, tourist minister Elena Udrea said Wednesday.

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Emerging Europe Real Time provides sharp analysis and insight into what’s making news in Central and Eastern Europe. Drawing on the expertise of our reporters in the Czech Republic, Hungary, Poland, Russia and Turkey, the site provides an inside track on economics, politics and business in this emerging part of the European continent.